Why do people lose money in the stock market?

[basilio]

Because they buy stocks associated with the renewable energy agenda. Everyone is losing by backing "Global Boiling", except the far left activists. Everyone else loses.

Buy oil and gas.

Droll Sean Droll. In fact why not refer people to star players in the oil and gas industry like David Lenigras.? Makes far more sense really.

What trolling, gratuitous , poisonous shite .

Or is this one of those special "jokes" one is not supposed to take seriously ? Certainly seen that before haven't we ?

Whatever the case, you're a legend and I love you.

 

[Value Collector]

Because they buy stocks associated with the renewable energy agenda. Everyone is losing by backing "Global Boiling", except the far left activists. Everyone else loses.

Buy oil and gas.

As I just mentioned in the FMG thread.

FMG today is 5 x the $5.58 it was trading at 5 years ago + its paid $15.08 in dividends and franking.

Thats over a 50% compounded annual return, No one should have lost money on that, but some people did by being to fidgety, they should have just put their buy contract in the bottom draw and went to the movies instead of clicking refresh and trying to second guess the market.

There is lots of reasons people lose money in the stock market, But a big one is being to active, and trading too much.

 

[qldfrog]

Because they buy stocks associated with the renewable energy agenda. Everyone is losing by backing "Global Boiling", except the far left activists. Everyone else loses.

Buy oil and gas.

Don't forget coal .but not with mines in the west

 

[Dona Ferentes]

good to see the rear view mirror works on post #82.

Or nuclear.

 

[qldfrog]

Or just being born in Japan, and investing in shares 34y ago and waiting this month to break even on the nikkey index ..not forgetting nikkey has a survivor bias advantage.
If an ASX crash happens in the coming month, how many will be happy to wait for 34y to get back into profit..I am sure the compounding of dividends would make everyone rich and happy in retirement
Obviously ,it could never happen here, we are different and such a strong economy based on iron ore and. , iron ore vs poor manufacturing high tech and migration free japan...
Perspective and looking outside the window

 

[TimeISmoney]

Or just being born in Japan, and investing in shares 34y ago and waiting this month to break even on the nikkey index ..not forgetting nikkey has a survivor bias advantage.
If an ASX crash happens in the coming month, how many will be happy to wait for 34y to get back into profit..I am sure the compounding of dividends would make everyone rich and happy in retirement
Obviously ,it could never happen here, we are different and such a strong economy based on iron ore and. , iron ore vs poor manufacturing high tech and migration free japan...
Perspective and looking outside the window

Australia has thrown some impossible curve balls, 20 solid years of residential housing growth has been spectacular. In the same way, everyone thinks the All Ords has hit tops, all it tells me is that people have much more money floating around in their bank accounts than what they say.

 

[divs4ever]

Or just being born in Japan, and investing in shares 34y ago and waiting this month to break even on the nikkey index ..not forgetting nikkey has a survivor bias advantage.
If an ASX crash happens in the coming month, how many will be happy to wait for 34y to get back into profit..I am sure the compounding of dividends would make everyone rich and happy in retirement
Obviously ,it could never happen here, we are different and such a strong economy based on iron ore and. , iron ore vs poor manufacturing high tech and migration free japan...
Perspective and looking outside the window

???

do you mean there is a party that actually cares for the citizens going to be elected soon ??

it can happen here when all our resources are being mined buy foreign nationals are we import everything we need as the population ages/shrinks don't let skin color make you forget they are politicians

 

[qldfrog]

???

do you mean there is a party that actually cares for the citizens going to be elected soon ??

it can happen here when all our resources are being mined buy foreign nationals are we import everything we need as the population ages/shrinks don't let skin color make you forget they are politicians

Just that the past is not always representative of the future, and that even our past is different from others..
So yes, in Australia or the US , a retiree in the last 3 decades woukd have been better off investing 100% in shares, and it could remain true but there is no innate truth in that, it is not a fundamental physics law or economics law.
It may. It may not. Do not be surprised by either...

 

[Value Collector]

Or just being born in Japan, and investing in shares 34y ago and waiting this month to break even on the nikkey index ..not forgetting nikkey has a survivor bias advantage.
If an ASX crash happens in the coming month, how many will be happy to wait for 34y to get back into profit..I am sure the compounding of dividends would make everyone rich and happy in retirement
Obviously ,it could never happen here, we are different and such a strong economy based on iron ore and. , iron ore vs poor manufacturing high tech and migration free japan...
Perspective and looking outside the window

It’s only taken 34 years to break even if you ignore dividends and also happened to invest at the peak.

if you dollar cost averaged into the market, and continued dollar cost averaging after the crash, you would have done well, even investing in Japan.

Also, being born in Japan doesn’t mean you have to limit your investments to Japan.

 

[Value Collector]

Just that the past is not always representative of the future, and that even our past is different from others..
So yes, in Australia or the US , a retiree in the last 3 decades woukd have been better off investing 100% in shares, and it could remain true but there is no innate truth in that, it is not a fundamental physics law or economics law.
It may. It may not. Do not be surprised by either...

There are some good economic reasons why holding equity in businesses out performs other types of securities and assets over time.

its pretty simple, if you hold a diverse basket of large profitable companies, they should make money over time, and

1. pay dividends, while also

2. retaining earnings to reinvest or repurchase shares.

3. in general have businesses or assets that provide some inflation hedging.

do some businesses disappear… yes
will other grow exponentially… yes

but owning a diverse group across the global economy, and you should get as decent income, and growth over time.

 

[Value Collector]

Australia has thrown some impossible curve balls, 20 solid years of residential housing growth has been spectacular. In the same way, everyone thinks the All Ords has hit tops, all it tells me is that people have much more money floating around in their bank accounts than what they say.

I think both are being caused by a steadily growing local population, and the fact that our economy has been linked to other economies that have been growing pretty fast Eg China and India.

 

[noirua]

Dec 12, 2023
Gambling and speculating in the stock market is really foolish, as explained by Warren Buffett in this latest video. By focusing on the fundamentals of businesses trading on the stock market, investors can pick the best bargains and outperform the indexes over time.

 

[noirua]

 

[Value Collector]

Or just being born in Japan, and investing in shares 34y ago and waiting this month to break even on the nikkey index

People often say things like this as an argument against long term investing, but as I said earlier they often omit the dividends out of the question, and their assumption is that the person ploughed 100% of their savings in at the peak, and then never added any extra.

but let’s take a look at the Japanese chart, because it’s often used in misleading statements like “the Japanese market made no money for 34 years.

you can see in the chart that there was a huge speculative peak, followed by a crash in the Japanese market, then it stabilised, but then dropped a bit further with the 2000 tech crash, Sep 11 attacks, before recovering, but then crashing in the GFC and then starting a 15 year recovery.

But through out all that the long term trend is still up, dividends were paid, and if you dollar cost averaged throughout all the crashes over your working life you would now be sitting on a nice pile.

the second chart is the last 15 years, you can see it’s been very good returns, especially when you add back dividends.

Basicallly my point is it’s unrealistic to write off an entire market just because it had a speculative bubble in the 90’s, because it’s not likely that some one saving for their retirement would put 100% of their savings in right at the peak, they would be putting in money over 40 years, which means they would have put money in at the low levels before they peak, some at the peak, but then the bulk of it at the low levels after the crash, and then seen their balance grow exponentially over the last 15 years.

Buffett himself has been investing heavily in Japan, it’s his largest holdings outside the USA, and he has made shiploads of cash, mean while all the Simps focus on the misleading info causing them to think the Japanese market is trash.